In what seems like a century ago I built and launched one of the first peer to peer websites – rentoid.com
In order to build the site, I outsourced the coding on a site called oDesk. This site and others of its ilk are a great entrepreneurial equaliser – for they reduce the barriers to entry. Not just in terms of price for the services, but also by allowing non techies gain access to techie services. They also allow eco systems to flourish across international borders. But they have an added benefit… a real benefit which isn’t spoken about all that often.
They facilitate an important cultural exchange.
Meet Vasilii Racovitsa – Pictured below – sharing a meal with me in my home. Doesn’t seem like such a big deal…
… Until you know that I first met Vasilii via oDesk as a freelanc web developer back in 2007. And that Vasilii was born during the cold war in the old USSR in a province called Moldova. [Moldova is now an independent country] While the relationship with Vasilii started as a commercial one, it is much more than that now. In fact, it has been much more than that for many years… he is a dear friend and business confidant for whom I want family and financial success as much as I want it for myself. But I just met him in real life for the first time last week.
Besides the fact that he made my first web play rentoid.com come to life, he also taught me more about technology than anyone else. The truth is that the lower labour rates in Eastern Europe allowed me to arbitrage my way into techie / startup land. But most people falsely believe that lower labour rates in developing economies are a one way street. The the people in developed economies are the only beneficiaries, and that we ‘take advantage’ of those in less developed markets. In truth we’ve both benefitted dramatically. Through my local connections Vasilii now generates more that 50% of his business from Melbourne, a mere 14,854km from Moldova. Which is why he is here. He is here on a large project totally independent of me. A project which dwarfs anything he ever did for me. But it was facilitated through the network I was introduced him to. What’s more interesting is that his business employs more people in Moldova than rentoid ever did here in Melbourne. And his development team now work in every form of coding / language / mobile dev you can think of.
Since he’s been here, it is like hanging out with a long lost relative. He’s just like the guy I used to speak to every day on skype… Which is a great reminder that the on-line and real world should only ever be pre-ambles to each other – seamlessly interchangeable.
I’m keen to introduce him to everyone in our local startup community who likes to meet amazing, smart, helpful people. In the time and multiple projects I’ve worked with him on, he has never once gone over budget and always delivered to spec. Put simply, he keeps his promises.
This week I’ve shipped him into the abode of big Scott Kilmartin, who he has also done some work for. But if you’re keen to offer:
“a bed for beta”
“divan for development”
“a cot for code”
“a hammock for HTML”
…or a simple welcome to someone from our global community, then just let me know.
While the tools this digital revolution have provided us are amazing, it’s the connection to our world that we should be truely thankful for.
The of two important cultural phenomenons got me thinking about office culture again. The love of coffee and the love of the internet. Both have a massive stake in western world office culture. Most people engaged in anything from small to large companies have omnipresent access to both. But the perception of each is vastly different.
But as far as I can tell the following is true:
Coffee: If you are at the coffee machine, making a coffee or buying one at the local espresso house in the morning no one looks twice. In fact it is respected and expected, part of the culture. A simple coffee fix is fair play in an office environment. Regardless of the fact that it is during work hours.
Internet: If you are surfing the web (excluding facebook) and potentially reading an article within your industry scope it looks bad. People see it as avoiding work or wasting time. It’s evident that this belief exists by the number of ‘click outs’ people do as others walk by. When in reality, this is a vital part of being effective and up to date.
What they both point to is the importance of culture. Both the macro societal one and the internal one. I’m starting to believe that culture is at the apex of company output. And the culture we foster determine the people we attract and the output we create. One thing I know for sure, is that in a rapidly changing business landscape I’d rather have an informed set of staff working for me, than a set of robots who are operating on the punch clock paradigm.
When the personal computing era started to thrive in the mid 1970′s it was juxtaposed against a strong anti-corporate counter culture. Many hippies saw computers as tools of oppression designed, built and used by large corporations. But there was another angle, another truth about the invention of this technology, and pretty much every other technology. If the technology has enough utility and importance it will eventually end up in the hands of the people. And if we are luck the invention will eventually be used to disrupt the bad parts of the world that invented it. And so crossover groups and communities like the Homebrew Computer Club emerged to fill that void. It happened with the PC and most forms of digital technology, where the people are now the major beneficiary as major legacy corporations scramble to survive.
For this type of thing to happen we don’t need more inventors, what we need is more innovators. Innovation is about taking an idea or concept and executing it. Making it usable. Introducing it in a way that makes it both accessible and desirable. Technology only really becomes valuable when it is distributed and omnipresent. If we want to create value through a startup or any business for that matter our focus should be on allowing people to easily ride on our vehicle, not the vehicle itself.
As I write this I am siting in an airport lounge and thinking about how much work I have got done, simply because I have not been interrupted by meetings.
But let me start by saying there is nothing more powerful than people sharing ideas when done right, the problem is that most meetings are what I call ‘Public Reading Scenarios’. That is people aggregating in the same room so that someone will read to them, something they could read in their own time, or more often the case, is totally irrelevant and no meeting is needed.
So I started doing this weird exercise every time I happen to be in a meeting filled with people. What I do is this:
- I count the number of people on the meeting.
- I decide what I think the average salary in the room is.
- I work out the hourly rate of the average salary.
- Add this to the number of hours the meeting goes for
- Work out the cost of meeting in wages
Last week I was in a meeting with 22 people. I calculated the average salary as $150k per annum, which then translated into an hourly rate of $75. The meeting went for 5 hours. The cost of this meeting was then $8250. I don’t care how big or wealthy the companies involved are, this is a lot of money. What makes it more significant is that most meetings are pointless – as this one was.
This meeting in particular was what I call a ‘Public Reading Event’. There was now real exchange of ideas, debate or in depth discussion. Rather a few people stood in front of copy heavy power point slides and read it out to the people sitting around eating muffins and pretending to listen. A total waste of time and the $8250. This is before we add to the price the opportunity cost of real work that wasn’t done during the 5 hours, or the cost of the meeting ‘culture’ it creates. And we all know a strong ‘meeting culture’ results in a vortex of indecision and slow business practice.
No point raising the issue without proposing a solution. So here is mine.
We add a widget to every email / meeting / calendar organiser which does my calculation above and estimates the ‘Cost of the meeting’. So when the meeting request is sent through the organiser and the participants see the cost in time – which is the real cost. It would say something like – estimated cost of meeting $3000. If people have to travel it should calculate that cost as well. This will make people think twice before they send the meeting request. It will also make us think twice before we accept the request. We measure the cost of most things in a company, but for some reason we rarely measure the cost of employees time in ‘salary employee’ environments, which is ironic when they usually represent 20-50% of the cost of running most companies. The widget is a pretty simple idea that could be mashed into any calendar function. Maybe it’s an iPhone calendar app that someone ought build?
When a meeting does occur and we agree it is worth while and attend, there would be a pretty strong emphasis on the value that occurred during it. I’m certain that ‘Public Reading Events’ would be a rare experience indeed.
So the only question remaining is which nimble app startup firm is going to build this?
I once worked in a consumer goods company which went from Individual offices to open plan.
I now work in an advertising agency where we have moved from individual offices to open desks.
What happened at these two firms is interesting. The first office (consumer goods marketing) sent out a mass email banning iPods (and any other brand of personal music device – this is seriously what the email said). Claiming that the idea of open plan was to encourage open communications, and it was rude to listen to music while working. That we couldn’t do our jobs while listening to music as it was distracting. While at the same time the directors had offices with doors.
The second office (advertising) did something much different. Firstly, all the directors have the same size desk and space as every employee. On our first day in the new office we all had a gift on our desk wrapped beautifully with a ribbon. Inside the pack was free coffee vouchers (for the cafe across the road) and a brand new iPod nano. And it had a note which said the following:
“The iPod nano – this is good for a few things. Moving to open will at times be challenging. If you feel it is getting on top of you, then feel free to bung in your iPod and listen to your favourite tunes. We’re also into the idea that we can all play part in creating our new vibe. So we’ll be asking you to supply the music each day. We’ll place a sign at the reception that says “Today’s music thanks to Ant Shannon.” Please make your playlist and get it on the dock. The iPods you’ve received also take video – get in the habit of recording the stuff you like or think about. Keep it, play it, share it.”
A massive difference in attitude, culture and resulting creative output. The culture we create in our startup or any business is a result of what we do, and we can change it at any time with a bit of effort and humanity.
“We’re living in a hyper accelerated era where advances in technology have doomed our culture. Before anything interesting can develop it’s blogged to death, marketed and raped until the next hot thing comes along, then repeat process”
Annon – As found in the comments section of http://www.nowtoronto.com